Wapic Insurance Plc’s audited financial results for the period ended 31st December, 2016, have shown that its profit before tax (PBT) dropped by 28 per cent to N1.193 billion, from the N1. 668 billion recorded in 2015.
Also, its underwriting profit reduced by 74 per cent to N381 million. This was attributed to high claims payout during the period and legacy claims cleanup in Ghana.
A review of the company’s performance showed that it recorded a 13 per cent growth in Growth Written Premium (GWP) to N8 billion over the previous year’s figure of N7 billion.
The decline in the Group’s profitability, according to a statement, was not unconnected with high claims payout in the year under review and its unflagging commitment to the on-going transformation initiative designed to reposition the institution for leading performance.
Foundational to the strategic efforts to demonstrate genuine commitment to clients’ obligations, Wapic said it paid out N3.8 billioin claims in the year under review. This amount was an increase of 76 per cent over the previous year’s figure.
This also impacted the Gross Claim Ratio (GCR) to 51 per cent in relation to the 35 per cent recorded in 2015.
Commenting on the results, the company’s Managing Director, Yinka Adekoya said: “While the growth of the insurance sector was challenged by liquidity, foreign exchange and other macro and micro economic factors that stifled much needed premium revenue, the group remained committed to cost, human capital and technology optimisation”.
Further analysis of the results showed that Wapic Insurance (Ghana) Limited recorded a 76 per cent increase in Gross Written Premium (GWP) to N1,174 million, from the N667 million recorded last year.
ThisDay
